You can work and receive Social Security, but your benefits may be reduced if you earn above a certain amount — and the rules differ depending on your age and which type of Social Security you receive.

If you have not yet reached your full retirement age, the Social Security Administration reduces your benefits by $1 for every $2 you earn above an annual limit. For 2024, that limit is $23,400 per year. In the year you reach full retirement age, the reduction is $1 for every $3 you earn above a different limit ($62,160 in 2024), but only earnings before the month you reach full retirement age count toward this limit.

Once you reach your full retirement age, you can earn any amount without any reduction to your benefits. If you receive Supplemental Security Income (SSI) instead of regular Social Security — a needs-based program for people with low income and limited resources — the earnings rules are stricter and more complex, and a portion of your work income will reduce your SSI payment.

Key Takeaways

  • If you are under full retirement age and earn more than $23,400 per year, Social Security will reduce your benefit by $1 for every $2 over that amount.
  • Once you reach your full retirement age, you can work and earn any amount without losing any benefits.
  • If you receive SSI, different rules apply: you can earn $65 per month tax-free, and benefits reduce based on remaining income.
  • You must report your earnings to Social Security; they do not automatically know how much you make.
  • The annual earnings limit increases each year based on wage growth, so check the current year's figure before you start working.

How the earnings limit works if you are under full retirement age

The earnings limit applies only to wages and net self-employment income. It does not apply to pensions, investment income, interest, annuities, or capital gains. If you work as an employee, only your wages count. If you are self-employed, only your net profit counts — not your gross revenue.

Social Security counts only earnings in the current year. If you earned $50,000 last year but earn $15,000 this year, only this year's $15,000 matters. The limit also resets each January, so if you stop working in November, you do not carry over unused room into the next year.

You must report your earnings to Social Security. They do not automatically receive this information from your employer or tax return. You can report earnings online through your my Social Security account, by phone at 1-800-772-1213, or by mail using Form SSA-777.

What happens in the year you reach full retirement age

The year you turn full retirement age, a different rule applies — but only for earnings before the month you reach full retirement age. From the month you reach full retirement age onward, the earnings limit no longer applies at all.

Before you reach full retirement age in that year, Social Security reduces your benefit by $1 for every $3 you earn above the higher limit (currently $62,160). Only earnings in the months before you reach full retirement age count. If you reach full retirement age in June, only earnings from January through May count toward this calculation.

Once you reach full retirement age in that month, you can earn any amount for the rest of the year and beyond without any reduction. This is why some people time major job changes or retirement around their full retirement age month.

How SSI earnings rules differ from regular Social Security

If you receive Supplemental Security Income (SSI) rather than regular Social Security retirement or disability benefits, the earnings rules are more restrictive. SSI is a needs-based program, meaning your income and resources directly affect whether you remain may be able to access and how much you receive.

SSI allows you to earn $65 per month without any reduction to your benefit. After that, benefits reduce by $1 for every $2 you earn above $65. Additionally, you can set aside up to $2,000 in resources (or $3,000 if you are married) without losing SSI may be able to access. Earnings above the $65 threshold count toward your resource limit, which can eventually disqualify you if your total resources exceed the cap.

SSI also has a Plan to Achieve Self-Support (PASS) program that lets you set aside income and resources for a specific work goal — such as education, training, or starting a business — without it counting against your SSI may be able to access. A PASS must be in writing and approved by Social Security before you begin setting money aside.

Reporting your earnings and avoiding overpayments

Social Security relies on you to report your earnings accurately and on time. If you underreport or fail to report, and Social Security later discovers the discrepancy through tax records or other means, you will owe back the benefits you should not have received. This debt does not disappear; Social Security can withhold future benefits or refer the case to the Treasury Department for collection.

The best practice is to report your earnings as soon as you know what you will earn in a given month. If you are unsure whether your income will push you over the limit, report it anyway — Social Security will calculate the reduction correctly, and you will know exactly where you stand. Do not guess or delay reporting hoping the situation will change.

If you do receive an overpayment notice, you have the right to request a waiver or appeal. Social Security may waive the debt if you were not at fault for the overpayment and repaying it would cause you financial hardship. You can also request an appeal if you believe the calculation is wrong.

Working and Social Security Disability Insurance (SSDI)

If you receive Social Security Disability Insurance (SSDI) — benefits based on a disability or blindness — the earnings rules are different from retirement benefits. SSDI has a Substantial Gainful Activity (SGA) threshold, currently $1,550 per month in 2024 for non-blind individuals and $2,590 for blind individuals. If you earn more than this amount, Social Security may determine that you are able to work and review whether you still may have access to for disability.

SSDI also includes a Trial Work Period that allows you to test your ability to work for nine months without losing benefits, even if you earn above the SGA threshold. After the trial work period ends, if your earnings remain above SGA, your benefits will stop. However, you may be may be able to access for continued Medicaid coverage for up to 93 months after benefits end, depending on your state.

Like regular Social Security, SSDI has a Ticket to Work program that extends your benefits and Medicaid while you work toward self-sufficiency. This program is voluntary and requires you to work with an approved employment network or vocational rehabilitation agency.

How the annual earnings limit changes each year

The earnings limit is not fixed. It increases each year based on changes in the national average wage index. In recent years, the limit has increased by roughly $1,000 to $1,500 annually, but the exact increase varies. Social Security announces the new limit in October for the following year.

If you plan to work, check the current year's limit on the Social Security website or by calling 1-800-772-1213. Do not assume last year's limit still applies. The difference between limits can affect whether you stay under the threshold or trigger a benefit reduction.

Frequently Asked Questions

Do I have to tell Social Security I am working?

Yes. Social Security does not automatically know your earnings. You must report them using your my Social Security account, by phone, or by mail. Failing to report can result in an overpayment that you will have to repay later, even if the overpayment was not your fault.

What if I earn money from self-employment or a side job?

Only net self-employment income counts toward the earnings limit — that is, your profit after business expenses, not your gross revenue. If you have multiple jobs, add all your earnings together. Gig work, freelancing, and side jobs all count as earnings.

Can I work part-time and still receive my full benefit?

Only if you earn less than the annual limit for your age. If you are under full retirement age and earn $23,400 or less in 2024, your benefit is not reduced. If you earn more, the reduction applies only to the amount over the limit.

What happens if I work after I reach full retirement age?

Once you reach your full retirement age, you can earn any amount without any reduction to your Social Security benefit. There is no earnings limit at full retirement age or beyond, regardless of how much you work.

Can I get back benefits that were reduced because I worked?

No. If your benefits were reduced because you earned above the limit, that reduction is permanent for those months. However, your benefit amount may be recalculated at full retirement age to account for the months you did not receive a full payment, which can result in a slightly higher benefit going forward.